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BPP OTQ Working Capital Pg16 Q.44

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP OTQ Working Capital Pg16 Q.44

  • This topic has 1 reply, 2 voices, and was last updated 2 weeks ago by John Moffat.
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  • May 18, 2023 at 2:35 pm #684598
    Asif110
    Participant
    • Topics: 70
    • Replies: 123
    • ☆☆

    Greetings sir.

    For q44, in regards to overcapitalization, can you help explain why the third statement is correct by a dummy example ?

    May 18, 2023 at 4:30 pm #684611
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 52481
    • ☆☆☆☆☆

    The third statement refers to overtrading and not to overcapitalisation, and I explain why this happens (with an example) in my free lectures.

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